Meghalaya CM says CD ratio to be improved

Shillong, Mar 30: Meghalaya Chief Minister D D Lapang has said the credit deposit (CD) ratio needs improvement as it was still below the stipulated norm of 60 per cent.

Inaugurating a state level seminar on State Credit organised by the National Bank for Agriculture and Rural Development (NABARD) here yesterday, Mr Lapang said the CD ratio had crossed 35 per cent.

In order to achieve the desired ratio, the chief minister said it was important to revive the cooperative credit structure in the state, adding that there was a need to speed up the progress in Self Help Groups (SHGs) formation so that the target of financing more SHGs and joint liability groups during 2007-2008 could be achieved.

Mr Lapang said the contribution of agriculture to the state's economy needs to be improved as its share was only 22 per cent.

''The state has accorded high priority to development of agriculture, horticulture and allied sectors, including agro processing and marketing in the state,'' Mr Lapang said.

Earlier, the chief minister also released a book titled ''Credit Related Issues in Meghalaya'' by Dr Shreeranjan, Commissioner and Secretary State Planning Department.

Its main objective is to deliberate on the extension of outreach of formal banking and to improve the CD ratio in the state and identify various infrastructure gaps where action is required to be taken by banks and government agencies.

NABARD has been entrusted with working out relaxed norms for implementing recommendations of the Vaidyanathan Committee Report in the north-eastern region. The report, which is conducive to strengthening the co-operative sector, stresses on the need for computerisation and professional auditing among others.

UNI